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1. Chapter 2
Fundamentals of HRM
Fundamentals of Human
Resource Management
Eighth Edition
DeCenzo and Robbins

2. Management Essentials
• Management involves setting goals and
allocating scarce resources to achieve
them.
• Management is the process of
efficiently achieving the objectives of
the organization with and through
people.

3. Management Essentials
• Primary Functions of Management
– Planning – establishing goals
– Organizing – determining what activities
need to be done
– Leading – assuring the right people are on
the job and motivated
– Controlling – monitoring activities to be
sure goals are met

4. Why is HRM Important to an
Organization?
• The role of human resource managers has
changed. HRM jobs today require a new level
of sophistication.
– Federal and state employment legislation has
placed new requirements on employers.
– Jobs have become more technical and skilled.
– Traditional job boundaries have become blurred
with the advent of such things as project teams
and telecommuting.
– Global competition has increased demands for
productivity.

5. Why is HRM Important to an
Organization?
• The Strategic Nature – HRM must be
– a strategic business partner and represent
employees.
– forward-thinking, support the business
strategy, and assist the organization in
maintaining competitive advantage.
– concerned with the total cost of its function
and for determining value added to the
organization.

6. Why is HRM Important to an
Organization?
• HRM is the part of the organization
concerned with the “people” dimension.
• HRM is both a staff, or support function
that assists line employees, and a
function of every manager’s job.

7. Why is HRM Important to an
Organization?
• HRM Certification
– Colleges and universities offer HR
programs.
– The Society for Human Resource
Management and Human Resource
Certification Institute offer professional
certification.

8. Why is HRM Important to an
Organization?
Four basic
functions:
• Staffing
• Training and
Development
• Motivation
• Maintenance

9. How External Influences Affect
HRM
• Strategic Environment
• Governmental Legislation
• Labor Unions
• Management Thought

10. How External Influences Affect
HRM
• HRM Strategic Environment includes:
– Globalization
– Technology
– Work force diversity
– Changing skill requirements
– Continuous improvement
– Work process engineering
– Decentralized work sites
– Teams
– Employee involvement
– Ethics

11. How External Influences Affect
HRM
• Governmental Legislation
– Laws supporting employer and employee
actions
• Labor Unions
– Act on behalf of their members by
negotiating contracts with management
– Exist to assist workers
– Constrain managers
– Affect non unionized workforce

12. How External Influences Affect
HRM
• Management Thought
– Management principles, such as those
from scientific management or based on
the Hawthorne studies influence the
practice of HRM.
– More recently, continuous improvement
programs have had a significant influence
on HRM activities.

13. Staffing Function Activities
• Employment planning
– ensures that staffing will contribute to the
organization’s mission and strategy
• Job analysis
– determining the specific skills, knowledge
and abilities needed to be successful in a
particular job
– defining the essential functions of the job

14. Staffing Function Activities
• Recruitment
– the process of attracting a pool of qualified
applicants that is representative of all
groups in the labor market
• Selection
– the process of assessing who will be
successful on the job, and
– the communication of information to assist
job candidates in their decision to accept
an offer

15. Goals of the Training and
Development Function
• Activities in HRM concerned with
assisting employees to develop up-to-
date skills, knowledge, and abilities
• Orientation and socialization help
employees to adapt
• Four phases of training and development
– Employee training
– Employee development
– Organization development
– Career development

16. The Motivation Function
• Activities in HRM concerned with helping
employees exert at high energy levels.
• Implications are:
– Individual
– Managerial
– Organizational
• Function of two factors:
– Ability
– Willingness
• Respect

17. The Motivation Function
• Managing motivation includes:
– Job design
– Setting performance standards
– Establishing effective compensation and
benefits programs
– Understanding motivational theories

18. The Motivation Function
• Classic Motivation Theories
– Hierarchy of Needs –Maslow
– Theory X – Theory Y –McGregor
– Motivation – Hygiene – Herzberg
– Achievement, Affiliation, and Power Motives
– McClelland
– Equity Theory – Adams
– Expectancy Theory - Vroom

19. How Important is the
Maintenance Function
• Activities in HRM concerned with maintaining
employees’ commitment and loyalty to the
organization.
– Health
– Safety
– Communications
– Employee assistance programs
• Effective communications programs provide
for 2-way communication to ensure that
employees are well informed and that their
voices are heard.

20. Translating HRM Functions
into Practice
• Four Functions:
– Employment
– Training and development
– Compensation/benefits
– Employee relations

21. Translating HRM Functions
into Practice
• Employment - Employment specialists:
– coordinate the staffing function
– advertising vacancies
– perform initial screening
– interview
– make job offers
– do paperwork related to hiring
• Training and Development –
– help employees to maximize their potential
– serve as internal change agents to the
organization
– provide counseling and career development

22. Translating HRM Functions
into Practice
• Compensation and Benefits –
– establish objective and equitable pay
systems
– design cost-effective benefits packages
that help attract and retain high-quality
enployees.
– help employees to effectively utilize their
benefits, such as by providing information
on retirement planning.

23. Translating HRM Functions
into Practice
• Employee Relations – involves:
– communications
– fair application of policies and procedures
– data documentation
– coordination of activities and services that
enhance employee commitment and
loyalty
– Employee relations should not be confused
with labor relations, which refers to HRM in
a unionized environment.

24. Translating HRM Functions
into Practice
• Purpose and Elements of HRM
Communications
– Keep employees informed of what is
happening and knowledgeable of policies
and procedures.
– Convey that the organization values
employees.
– Build trust and openness, and reinforce
company goals.

25. Translating HRM Functions
into Practice
• Effective Communication programs
involve:
– Top Management Commitment
– Effective Upward Communication
– Determining What to Communicate
– Allowing for Feedback
– Information Sources

26. Does HRM Really Matter?
• Research has shown that a fully functioning
HR department does make a difference.
• Organizations that spend money to have
quality HR programs perform better than
those who don’t.
• Practices that are part of superior HR
services include:
– rewarding productive work
– creating a flexible work-friendly environment
– properly recruiting and retaining quality workers
– effective communications

27. HRM in an Entrepreneurial
Enterprise
• General managers may perform HRM
functions, HRM activities may be
outsourced, or a single generalist may
handle all the HRM functions.
• Benefits include
– freedom from many government regulations
– an absence of bureaucracy
– an opportunity to share in the success of
the business

28. HRM in a Global Village
• HRM functions are more complex when
employees are located around the
world.
• Consideration must be given to such
things as foreign language training,
relocation and orientation processes,
etc.
• HRM also involves considering the
needs of employees’ families when they
are sent overseas.

29. HR and Corporate Ethics
• HRM must:
– Make sure employees know about
corporate ethics policies
– Train employees and supervisors on how
to act ethically

30. HR and Corporate Ethics
• The Sarbanes-Oxley Act passed in
2002, establishes procedures for public
companies regarding how they handle
and report their financial status.
– Establishes penalties for noncompliance.
– Provides protection for employees who
report executive wrongdoing.
– Requires that companies have
mechanisms in place where complaints
can be received and investigated.